8.
Comparison Criteria Partnership LLP Limited Company Number of Partners/ Shareholders Minimum 2 Persons 10- Banking 20- Non Banking Minimum 2 Persons - no maximum unlimited 2 - 50 – Private Company 7 - unlimited - Public Company Legal Entity No Separate Legal Entity Body Corporate Body Corporate Liability Unlimited – may extend to personal assets of Partner/s Limited to the extent of Partner’s contribution Limited to the extent of unpaid share capital Compliances No major requirement Annual Returns, Financials and other returns based on events Company Secretarial (Statutory Records, Board Meetings, General Meetings), Annual Accounts and Annual Returns to be filed Tax Income of Firm taxed in the hands of the Firm Similar to Partnership Corporate Taxation (around 30%) Management Managed by the Partners Managed by the Partners Separation of Ownership and Management – shareholders, Board of Directors Dissolution/Winding up Retirement/Dissolution of Partnership Procedure as per LLP Act Very procedural and long drawn